The Dutch government has reduced its holding in KPN, the country's leading telecom operator, with sale of stake worth 1.4 billion euro ($1.6 billion) and said it would also give up its veto rights over mergers and other decisions. The government has halved its stake to 8 per cent, selling 60 million shares back to KPN for 500 million euro, which KPN said it would cancel, and 105 million shares to ABN Amro. KPN said the deal was in line with its previous intention to reduce the existing overhang in the market. Meanwhile, the government will use the proceeds of the sale to reduce state debt and plans to further reduce its shareholding over time.